Japan Stocks Extended 2-Day Rally, Real Wages Declined 1.3% In June

Akira Ito
06 Aug, 2025
Tokyo

Stock market indexes in Tokyo advanced for the second consecutive day amid ongoing uncertainty linked to the U.S. trade policy. 

The Nikkei 225 Stock Average increased 0.8%, and the broader Topix index advanced 1%, as investors overlooked brewing trade backlash between Japan and the U.S. 

Japan's trade negotiator Ryosei Akazawa plans to press the Trump administration to not impose tariffs on automobiles and pharmaceuticals.

Moreover, Trump threatened to impose additional tariffs on India but signaled that his administration is closer to an agreement with China. 

Donald Trump has been highly unreliable, and his previous claims and assertions about trade deals have been proven to be misleading or just outright false. 

The so-called "trade deals" trumpeted by Trump with Japan, Vietnam, the U.K., and the European Union are nothing beyond a framework, lack details, and the terms of the deal could not be confirmed.

 

Japan's Real Wages Declined for 6th Consecutive Month In June

Japan's real wages decreased for the sixth consecutive month in June as inflation outpaced pay gains. 

Nominal wages, or average total monthly cash earnings including base and overtime pay per worker, increased 2.5% to 511,250 yen, or $3,500, the Ministry of Health, Labor and Welfare said.

Nominal wages rose for the 42nd consecutive month, but the inflation used to calculate real wages increased to 3.8%, keeping the real wage growth in negative territory.

Of the total pay, base pay and other earnings increased 2.1% to 270,244 yen, after leading Japanese companies agreed to increase wages by more than 5% for the second consecutive year.

Real wages in June decreased 1.3% from a  year ago, after higher food prices stoked overall inflation. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.6% to 40,771.50, and the broader Topix advanced 1% to 2,964.97.

Defense and heavy engineering industry-related stocks advanced amid expectations of higher government spending. 

Mitsubishi Heavy Industries Ltd. gained 4.8% to ¥3,927.0, IHI Corp. decreased 1.2% to ¥17,140.0, and Kawasaki Heavy Industries declined 0.3% to ¥11,100.0.